NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Continue to See Support

NASDAQ 100 Technical Analysis

The Nasdaq 100 rallied slightly during the early hours on Wednesday as it looks like we are trying to do everything we can to break to the upside. If we do break out to the upside, the 26,000 level, followed by the 26,250 level, will be targeted. Short-term pullbacks should be thought of as potential buying opportunities, especially anywhere near the 25,000 level, which is also backed up by the 50-day EMA.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks like it is trying to rally as well, but doesn’t quite seem to have the momentum to break out yet. When the 47,750 level is in the area that I think that if you can break above there, then the 48,000 level gets targeted, followed by 48,450. The 47,000 level underneath should be supported with the 50-day EMA rising towards it, offering a bit of support.

All things being equal, though, this looks like a market that had rallied for some time and now is trying to enter some type of consolidation range, which is something that you can say about all of these indices and is not necessarily a bad idea. After all, you can’t go straight up in the air forever.

S&P 500 Technical Analysis

The S&P 500 is slightly positive, but you can see we’re just stalling here right around 6850. If we can break out to the upside, then I think a fresh new high is very likely, and this time of year is typically bullish, so that wouldn’t be a huge surprise. Overall, I think this is a scenario where traders are working off some of the froth from the big recovery, going back to the Friday session, November 21. And now we are just trying to work this off before maybe the next move to the upside.

Ultimately, this is a market that I think will continue to be attractive, and this time of year typically is positive. So, I like it. It doesn’t mean that it has to go straight up in the air, but I think short-term pullbacks will continue to attract a little bit of buying pressure.

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